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Marinya won't support Walker re-election

Marinya Media Pty Ltd, the private family company controlled by John B Fairfax, says it won't support the re-election of Fairfax Media Ltd chairman Ron Walker at the group's next annual general meeting.

Mr Fairfax and Nicholas Fairfax, who are directors of Fairfax Media and Marinya said in a joint statement: "Mr Walker is well aware of significant shareholder dissatisfaction with his tenure as chairman.

"Marinya, for one, cannot see how Mr Walker's stated intention to delay his retirement assists the company or its shareholders.

"It unnecessarily defers the commencement of the much needed process of board and leadership renewal and we consider it inappropriate that a departing chairman would be influential in the choice of new directors," the pair said in a strongly worded statement.

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Mr Walker is due to stand for re-election as a director at Fairfax Media's annual general meeting in November after saying in a newspaper interview published on Thursday that he intends to retire from the board in the second half of 2010.

Mr Walker told The Australia Financial Review that he had discussed with the board his intention to retire at that time.

John B Fairfax and Nicholas Fairfax said: "Marinya can see no sound case to support the continuance of Mr Walker's directorship of chairmanship for another year.

"Renewal must start today.

They said Mr Walker and the rest of the board would not be surprised by their views.

They said "after years of under performance" the company was "poised" to re-build the shareholder value that was destroyed.

They called for new leadership to ensure a unified board that can function effectively and provide "sound" strategic direction.

"We do not believe that the current board under the leadership of Mr Walker meets these tests and, for several months, we have been urging the board of directors of Fairfax Media to recognise the need for board renewal."

Marinya holds 9.7 per cent of Fairfax Media.

John B Fairfax and Nicholas Fairfax said they consider "inadequate attention has been paid to matters of corporate governance".

They believe that during Mr Walker's four years as chairman "an unacceptable degree of risk" was introduced to the company's capital structure through a series of debt funded acquisitions.

"While we clearly appreciated that Fairfax Media has been operating within an industry in the midst of structural change, it is our view that the company's strategic outlook and leadership calls for new directions," they said.

"A necessary first step is a proper board process to select a new chairman.

"We will be voting the Fairfax Media shares we control together with any shares for which we hold open proxies, against the re-election of Mr Walker".

John B Fairfax added the pair sincerely believed voting against Mr Walker was in the best interests of all Fairfax Media shareholders.

"We do not do this lightly," he said in the statement from Marinya.

"It is uncharacteristic.

"It is not personal."

John B Fairfax said Fairfax Media was a great company and needed and deserved the best leadership available."

A Fairfax Media spokeswoman told AAP the company had no comment and said it was a matter for the board.

Shares in Fairfax Media, which in August reported a statutory net loss of $380.1 million for fiscal 2009, were up 4.5 cents to $1.72 at 1538 AEST on Thursday.